Southern California gateway earns higher rating for robust pandemic recovery and strong financial management
(Ontario, California – March 1, 2023) – S&P Global Ratings raised its long-term rating for Ontario International Airport Authority revenue bonds outstanding to A from A-minus because of the airport’s substantial recovery from the COVID-19 pandemic, passenger volumes sustained above pre-pandemic levels and significant cash reserves. The ratings agency further said its outlook for the OIAA is stable.
“The upgrade reflects our view of the airport’s improved market position and strong overall enterprise risk profile, driven by a substantial rebound in enplaned passenger levels that have been sustained above pre-pandemic levels and the expectation that the authority will maintain financial metrics consistent with a strong financial risk profile as it issues debt to fund its capital needs,” S&P Global reported.
Three key credit strengths contributed to the higher rating, according to the update:
“We couldn’t be more pleased by the S&P rating as Ontario International Airport continues to turn heads in its pandemic recovery,” said John M. Schubert, OIAA chief financial officer. “With our population base growing, passenger and cargo volumes remaining strong and our aviation partners showing even greater confidence in our facilities and services, we are looking forward to sustained growth and a bright future.”
Ontario International Airport welcomed more than 5.7 million air travelers in 2022, outpacing pre-pandemic 2019 by 2.8%. It was the airport’s highest annual passenger volume since 2008. Shipments of air cargo also outpaced 2019 volume by nearly 9% and maintained ONT’s position as a major commerce and logistics hub.
Ontario ranks among the 10 largest cargo airports in North America and, according to a recent analysis by Oxford Economics, serves as the hub of a global supply chain network that generates $17.8 billion in economic activity.
S&P Global Ratings is a leading provider of credit ratings with more than 1 million credit ratings outstanding on government, corporate, financial sector and structured finance entities and securities.
Fairbanks International Airport Baggage Transport Conveyor Enhanced With Mod Drive™ System
Airports face a host of unique industry challenges, such as meeting efficiency regulations and seeking out the best maintenance practices to reduce costs and keep operations flowing. In today’s current economic climate, any potential cost savings can go a long way.
In 2019, Alaska’s Fairbanks International Airport (FAI) sought to modernize its equipment and operations. They were dissatisfied with the performance of the gearmotors on their baggage transport conveyors and began searching for new suppliers. Regal approached FAI with a solution that could improve equipment performance and simplify maintenance, with the added benefit of energy cost savings: the Hub City® MOD Drive™ system.
This white paper discusses the hardware deployed, the test results and the annualized expectations for ROI.